The STOXX Europe 600 closed up 2.2% at 623.25 points on May 6, marking its strongest finish since mid-April. The catalyst: growing optimism that a US-Iran peace agreement could actually materialize, pulling one of the biggest geopolitical risk premiums off the table in months.
Banks and airlines led the charge higher as oil prices dropped sharply, reversing a painful trend that had gripped markets since hostilities escalated in late February.
What’s driving the rally
Reports of meaningful progress toward a US-Iran peace deal sent a clear signal: the Strait of Hormuz, one of the world’s most important oil transit routes, could soon reopen fully. The conflict, which began around late February 2026, had previously knocked the STOXX Europe 600 down roughly 10% from its peaks during certain stretches. So the 2.2% single-day pop wasn’t just enthusiasm. It was a partial unwinding of months of accumulated fear.
The bigger picture
